Freedom of movement for workers shall be secured within the Community.

Such freedom of movement shall entail the abolition of any discrimination based on nationality between workers of the Member States as regards employment, remuneration and other conditions of work and employment.

It shall entail the right, subject to limitations justified on grounds of public policy, public security or public health:

(a) to accept offers of employment actually made;

(b) to move freely within the territory of Member States for this purpose;

(c) to stay in a Member State for the purpose of employment in accordance with the provisions governing the employment of nationals of that State laid down by law, regulation or administrative action;

(d) to remain in the territory of a Member State after having been employed in that State, subject to conditions which shall be embodied in implementing regulations to be drawn up by the Commission.

The provisions of this article shall not apply to employment in the public service.[1]

The right to free movement has both 'horizontal' and 'vertical' direct effect,[2][3] such that a private citizen can invoke the right, without more, in an ordinary court, against other persons, both governmental and non-governmental.

Freedom of movement and residence for persons in the EU is the cornerstone of Union citizenship, which was established by the Treaty of Maastricht in 1992. Its practical implementation in EU law, however, has not been straightforward. It first involved the gradual phasing out, of internal borders under the Schengen agreements, initially in just a handful of Member States. Today, the provisions governing the free movement of persons are laid down in Directive 2004/38/EC on the right of EU citizens and their family members to move and reside freely within the territory of the Member States. However, the implementation of this directive continues to face many obstacles.[6]

The meaning of 'worker' is a matter of European Union law.[7] "The essential feature of an employment relationship, however, is that for a certain period of time a person performs services for and under the direction of another person in return for which he receives remuneration."[8]

Purpose: under the European Court of Justice caselaw, the rights of free movement of workers applies regardless of the worker's purpose in taking up employment abroad,[9] so long as the work is not solely provided as a means of rehabilitation or reintegration of the workers concerned into society.[10]

Time commitment: the right of free movement applies to both part-time and full-time work, so long as the work is effective and genuine[9] and not of such small scale, irregular nature or limited duration to be purely marginal and ancillary.[9][11]

Remuneration: a wage is a necessary precondition for activity to constitute work, but the amount is not important. The right to free movement applies whether or not the worker required additional financial assistance from the Member State into which he moves.[12] Remuneration may be indirect quid pro quo (e.g. board and lodging) rather than strict consideration for work.[13]

The right to free movement applies where the legal relationship of employment is entered into in or shall take effect within the territory of the European Community.[14][15] The precise legal scope of the right to free movement for workers has been shaped by the European Court of Justice and by directives and regulations. Underlying these developments is a tension "between the image of the Community worker as a mobile unit of production, contributing to the creation of a single market and to the economic prosperity of Europe" and the "image of the worker as a human being, exercising a personal right to live in another country and to take up employment there without discrimination, to improve the standard of living of his or her family".[16]

In the Treaty of Accession 2003, the Treaty of Accession 2005, and the Treaty of Accession 2011, there is a clause about a transition period before workers from the new member states can be employed on an equal, non-discriminatory terms in the old member states. The old member states have the right to impose such transitional period for 2 years, then to decide to extend it for additional 3 years, and then, if there is serious proof that labour from new member states would be disruptive to the market in the old member states then the period can be extended for the last time for 2 more years.[23]

According to the principle of reciprocity, new member states have the right to impose restrictions for all the countries that introduced restrictions and transitional periods to their citizens. Croatia has decided to apply this rule.[24]

The citizens of the member states of the European Economic Area (which includes the EU) have the same right of freedom of movement in the EEA as EU citizens do within the Union. Additionally, the European Union and Switzerland have concluded a bilateral agreement with the same meaning. The EEA member states outside the EU (Norway, Iceland and Liechtenstein) and Switzerland are treated as "old member states" in regard to the Treaty of Accession of the new EU members, so they can impose such 2+3+2 transitional periods.

Switzerland initially granted freedom of movement to EEA citizens in 2005-2011. It briefly reimposed restrictions in 2012-2013, but lifted them again in 2014. A 2014 Referendum directed the Swiss government to impose permanent quotas on residence/work permits for citizens of all EEA countries except Liechtenstein, starting from 2017 at the latest.[25][26][27] However, on 22 December 2016, Switzerland and the EU concluded an agreement that a new Swiss law (in response to the referendum) may require Swiss employers to give priority to Swiss-based job seekers (Swiss nationals and foreigners registered in Swiss job agencies) but does not limit the free movement of EU workers to Switzerland.[28]

Liechtenstein imposes a permanent quota for all EEA citizens (issuing 56 residence permits per year)[29][30] and a separate quota for Swiss citizens (a further 12 residence permits per year).[29]

^For the countries that joined the EU before 2004, plus Cyprus and Malta, restrictions on freedom of movement were initially lifted on 1 June 2007, but Switzerland decided to reimpose them from 1 June 2013 to 31 May 2014 under a safeguard clause. Similarly, for the countries that joined the EU in 2004, except Cyprus and Malta, restrictions on freedom of movement were initially lifted on 1 May 2011, but Switzerland decided to reimpose them from 1 May 2012 to 30 April 2014 under a safeguard clause. Also, according to the Protocol to the Agreement between the European Community and Switzerland regarding the participation of Bulgaria and Romania, Switzerland applied the 2+3+2 transitional period formula to these two countries starting from 1 June 2009, an may enforce some exclusions for an additional 3 years, until 31 May 2019.